Interview: Concentration Acquisition of Jitian Layout Lab Instrument Market

Guide: In August 2011, Concentration Technology (Hangzhou) Co., Ltd. (hereinafter referred to as “Concentration Technology”) acquired Beijing Jitian Instrument Co., Ltd. (hereinafter referred to as “Ji Tian”), which caused a great sensation in the industry. Perhaps many people think that Concentration Technology has been focusing on the field of industrial gas online analysis and online monitoring of the environment, and entering the laboratory instrument market is somewhat "sudden", but in fact, "foresighted" concentrating technology has long been in the laboratory instrument market " Quietly laid out, in 2010 launched a self-developed chromatography-mass spectrometry products. The acquisition of Ji Tian is a concentrating "big move" in the expansion of the laboratory instrument market.

The acquisition of Jitian, Congguang Technology is an important step in the expansion of the laboratory equipment market. In the announcement of the acquisition announced by the company, Concentrate Technology clearly stated its intention to acquire Jitian: “The company intends to acquire 100% of Beijing Jitian. Equity, strategic layout of the laboratory equipment market, to accelerate the expansion of the company's laboratory analysis equipment and sample processing equipment business, and enhance the company's comprehensive competitiveness in the analysis of the instrument industry. "Dr. Wang Jian also said:" This is we enter the laboratory equipment An important step in the market."

With regard to Jitian, it is "in sight" and values ​​its laboratory equipment's independent research and development capabilities and application experience. "JiTian is a company with strong independent research and development capabilities in domestic instrument companies. We have our own patented technology and focus on customer needs. We have excellent products. Application development team, and continue to open up new application areas.The domestic like this kind of technology-oriented company that is persistently advancing and improving in technology is really rare. Most of the companies that we acquired before are mainly based on channels, and it is difficult to find the acquireable ones. 'Technology' company. So when we see Ji Tian, ​​it's especially 'heart'."

“In addition, the goal of Concentration Technology is to become the mainstream instrument manufacturer in the world. The leaders of Jitian, such as Mr. Liu Mingzhong of Jitian, also have such ideas. Their dream of a lifetime is to “make domestic instruments”. Everyone’s vision is also It is relatively consistent.To sum up, Ji Tian's corporate style is similar to concentrating technology, the company's philosophy and thinking approach are close, and both parties have more common language."

“So Concentration Technology has always had a love for Ji Tian.” Since we started at Pittcon four years ago, we’ve been interested in working with Ji Tian with a keen interest. The marathon’s “negotiation” has finally been completed. Congguo''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''s synergies with Congguang Technology's merger with JiTian will provide more synergy with future resources. The experience can also promote the development of concentrating technology in laboratory instruments."

Regarding the agreement reached on this gambling agreement, Dr. Wang Jian explained: “This is a new attempt of Concentration Technology, but it is also a common practice in the industry, through the establishment of this incentive mechanism that is attractive to both parties to the acquisition. After the acquisition, the management of the company will not be replaced in the short term, ensuring the smooth transfer of business, which is conducive to the sustainable development of the company's business."

For some of the arguments on the Internet that are similar to “JiTian's performance for the gambling agreement could not require an R&D department from now on,” Dr. Wang Jian was puzzled and stated that: “The reason why Consun Technology acquired Jitian is because Focusing on its R&D capabilities, we can never allow users to believe that that happens. In fact, in the related content that was not disclosed in the gambling agreement, both parties have provided very detailed regulations on this, including the annual R&D investment ratio can not be lower than the amount, R&D. The identification of the core members of the ministry, the inability of the core members to leave, etc. We took into account almost all the details and spent a lot of energy in planning to ensure that Jitian continues to maintain its strong independent research and development capabilities."

"The 'Ji Tian' brand will remain in place and its sample preparation equipment is very promising."

"By the end of the gambling period, by 2013, Concentration Technology will be more involved in the Ji Tian, ​​more integration. By then, Ji Tian will complete the replacement of shareholders and leadership, and will introduce a new company system. With specific integration methods, we will find the best way in our exploration. The 'Ji Tian' brand has a very good reputation in the country and will always be retained. In the future, it will also be possible to implement dual brands."

For Ji Tian's atomic fluorescence products, Dr. Wang Jian said: “Because of the restrictions of the standard, it is also necessary for AFM to be extended to foreign countries. We will carefully analyze which countries and which market segments will be the targets for promotion of atomic fluorescence, and add Big promotion."

“In the next 3-5 years, the market for laboratory sample preparation equipment will grow explosively. We are optimistic about our sample preparation equipment, especially rapid solvent extraction, automated solid-phase extraction, microwave digestion and other equipment, because they All of them have different characteristics and have combined many years of experience."

The laboratory instrument market is one of the main battlefields of Concentration Technology in the next decade. “In fact, we are interested in various advanced analytical instruments in the entire scientific instrument field. Naturally, laboratory instruments are no exception. Optical technology has become the mainstream supplier of online instruments in the international market (the world's top 10 or so). In the next decade, we must strive to achieve the goal in the field of laboratory instruments, said Dr. Wang Jian.

Open up the soil and become an "environment and safety solution expert"

“Concentrated Light Technology has been continuously expanding since it was established in 2002. The history of our company is to open up new horizons, from industrial process gas analysis to environmental monitoring, from steel fields to petrochemicals, environmental protection and other fields. The new area of ​​the chamber instrument market is just one of the actions of Concentration Technology's customary extension."

"Concentration Technology's corporate positioning is 'environmental and security solutions experts', the company will continue to expand around the 'environment' and 'security' in the future. 'Environment' includes environmental monitoring equipment, environmental governance and even broadly Environmental services, while 'security' refers not only to environmental and industrial safety, but also to food safety, drug safety, etc. For this reason, we not only continue to develop our on-line monitoring business, but also begin to enter environmental protection, food safety, Laboratory analytical instrument market in the fields of drug safety and other fields."

"From another perspective, the development of concentrating technology can be summarized in two directions, namely, 'industry deep expansion' and 'horizontal expansion of product lines.' We originally only conducted environmental monitoring, and now also the environmental management of the upper reaches of the industrial chain. Incorporating the scope of business, this is the 'industry's deep expansion'; originally we did online monitoring instruments in the field of environmental monitoring, and now can also be used in laboratory instruments in the field of environmental monitoring, which is the 'horizontal expansion of the product line'. This is logical The development of concentrating science and technology is not aimless, but it is carried out on a certain basis."

It is determined to be one of the best domestic and international mainstream laboratory instrument suppliers. Confocus Technology attaches great importance to laboratory analytical instruments. At present, there are more than 100 R&D personnel engaged in the development of new laboratory product products in the company, exceeding the total number of R&D personnel. A quarter of them have a high percentage of companies. Looking at China, there may not be a few domestic manufacturers willing to invest in such a large-scale R&D investment."

“Concentrating on science and technology to be one of the best suppliers of laboratory analytical instruments in the country is a must. It is the first step. On this basis, we must use the trend of internationalization and strive to become an international comparison in the future. Mainstream laboratory analyzer supplier."

“At present, in the field of laboratory instruments, Concentration Technology is still in its infancy, but it has also achieved some results. After several years of research and development, we have successively introduced laboratory equipment such as photoelectric direct reading, GC-MS, and ICP. In this market, We do not 'price war', but 'develop new technologies', and at the same time do a good job of reliability. For example, current domestic optical direct reading products use old generation technology, and Concentration Technology has introduced the first to use CCD full spectrum technology. Three generations of photoelectric direct reading, and after rigorous testing and verification, in the year of 2011, the market has achieved remarkable results. Also for example, our portable GC-MS, using self-developed fast gas chromatography and ion trap mass spectrometry technology, testing The types of substances, speed of detection, ability to confirm unknowns, portability, etc. surpass imported products abroad and have been unanimously approved by experts and users."

"An instrument that combines our cost control and after-sales service when our technology truly has a competitive advantage is entirely likely to force foreign companies to withdraw from the instrument's domestic market."

"Overall, Concentration's laboratory instrument business is well developed. We accumulate it on the one hand and consider more international cooperation on the other."

Methodology Fleet Group, Concentration of Science and Technology to Win Lab Instrument Market's "Two Magic Formulas"

After reading the above, perhaps you and I both feel that they have concentrated on the “big appetite” and “confidence” of technology. Then what measures have been taken by the domestic equipment manufacturers that have been established for ten years and have rapidly emerged to “promote digestion” and thrive? In the interview, Dr. Wang Jian frequently mentioned two words - "Methodology" and "Fleet group." This may be the secret of concentrating on science and technology, and it is also the “two magic weapons” that can confidently win in the laboratory instrument market. What is the mysterious "methodology" and "fleet group"?

"Methodology" is based on the principle of "product differentiation" and is a "universal principle" that guarantees the success of new products.

“Entering new fields and new markets will certainly face many challenges, but concentrating technology is not afraid because we have 'methodology.' The so-called 'methodology' is a set of concentrating technologies that have been summed up in many years of practice. After the new product is launched, it will be able to obtain the market's successful 'routines' and its essence is product differentiation. Concentration's past successes prove that this 'methodology' is effective."

Dr. Wang Jian explained: “First of all, we must select products and fields that are relatively less mature in the market, less in terms of suppliers, and less competitive, and avoid competition as much as possible to ensure that Concentration Technology has a certain level in the product market. The development space for this is to conduct in-depth research on the patents related to products and products on the market, and the product line characteristics of mainstream manufacturers.After the targets have been determined, technological advancement will be carried out in a differentiated way.Differentiation of technologies means that products have innovation points. And these innovations can bring "benefits" to users; advance development, that is, prepare ahead of time before the market breaks out."

“In this way, after the product is developed, we will find suitable market opportunities and adopt a certain market strategy to quickly occupy the market. The so-called market strategy can be product price differentiation, product service differentiation, or subdivision. Market differentiation."

So, how does Concentration Technology apply this set of "methodology" to the laboratory instrument business?

"In the laboratory instrument market, Concentration's strategy is to first select the entry point, that is, to select products that are not or not well-made by the domestic counterparts and that are relatively technically difficult, such as mass spectrometry, ICP, etc., for in-depth research. , to develop products with technological differentiation."

"The Chinese market is so large that the market for any kind of instrument cannot be completely occupied by foreign products. Concentration technology has entered the laboratory instrument market and can at least regain the share of domestic instruments. In addition, for certain types of laboratories If the instrument is subdivided into small markets, mainstream companies either don't do it or don't do it vigorously, then we have room for growth. Usually these big foreign companies will implement product standardization and make the product a limited number because of cost considerations. There is little room for users to choose from, but Concentration Technology can tailor the customer's preferences and make different laboratory instruments based on market segments to provide products that better meet the diverse needs of customers."

“Although for the time being we are still in the non-mainstream market, but this market has enough space for us to grow. This fight for one segment after another, focusing on technology gradually from the 'non-mainstream' to 'mainstream' laboratory equipment Related businesses have gradually developed."

The “Fleet Group” focuses on the professional team under the leadership of the elite to build a highly efficient “distributed intelligence system”.

“The business scope of Concentration Technology is continuously expanding and there are more and more fields involved. Under such circumstances, it is impossible for me and Yao Naxin (General Manager of Concentration Technology) to do everything in the same way as at the beginning of the venture. The company operates efficiently, and we use a distributed intelligence system to ensure that each subsystem can operate independently.We call this system the 'fleet group', that is, the company's business is divided into different 'fleet' (Business Unit Or the subsidiary company), each 'fleet' related business is fully responsible by the corresponding person in charge. Each 'fleet' person is only responsible for his own 'professional' business, highly focused on this 'a stall'."

"To ensure the development of the 'fleet', we must first choose the 'leader'. He should be one of the most capable, capable, motivated and thoughtful people. Many of our 'leaders' are very young, these 'young young men'. 'It is an 'expert' in Concentration Technology, they are highly focused on their own 'slot' business, dare to challenge themselves, and will continue to present themselves with challenging work goals. And Yao Naxin and others are inside the company. In the 'miscellaneous home', we are involved in various fields and have knowledge of all the company's business. We are not managing these 'experts' but trying to help them. After this, the company establishes an incentive system and system, such as a company. The backbone equity incentive system encourages everyone."

“Every subsystem of Concentration Technology adopts the fleet management model, and laboratory equipment is no exception. Mr. Ma Fangjun, who is responsible for the marketing of laboratory instruments, has worked in the laboratory instrument industry for many years and has a wealth of industries. Mr. Han Shuanglai, who is responsible for product research and development, was responsible for the R&D of the company's environmental online monitoring equipment and led the team to successfully develop a variety of environmental monitoring instruments and achieved great success in the market. I took 'lab instrument' "The fleet will be handed over to them. The future Concentration Technology will continue to expand its product line, continue to enter new areas, and maintain an annual growth of 40%. Fleet operating model will allow us to grow rapidly."